Eurozone business and consumer confidence on the up

Flash data released by the European Commission for July are surprising on the upside. The Economic Sentiment Index came in at 101.3 compared to 99.0 in June – the highest level since May 2008. The increase in confidence was broad based, except in the case of the building sector where confidence is still extremely negative. Consumer confidence also improved but remains subdued.

Sources: I-Net Bridge; Plexus Asset Management.

Confidence in the euro zone’s problem areas is also holding up.

Sources: I-Net Bridge; Plexus Asset Management.

Note: Since May 2010 the business surveys have been reclassified and the historical chart data are likely to be adjusted.